Great week for JS Global Lifestyle Company Limited (HKG:1691) insiders who have 61% stake and they haven’t stopped buying

Key Insights

• JS Global Lifestyle's significant insider ownership suggests inherent interests in company's expansion
• The largest shareholder of the company is CJ Xuning Wang with a 60% stake
• Recent purchases by insiders

If you want to know who really controls JS Global Lifestyle Company Limited (HKG:1691), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 61% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Insiders who purchased recently should be particularly happy after the stock gained 7.9% in the past week.

In the chart below, we zoom in on the different ownership groups of JS Global Lifestyle.

See our latest analysis for JS Global Lifestyle

What Does The Institutional Ownership Tell Us About JS Global Lifestyle?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

JS Global Lifestyle already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of JS Global Lifestyle, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in JS Global Lifestyle. With a 60% stake, CEO CJ Xuning Wang is the largest shareholder. With such a huge stake, we infer that they have significant control of the future of the company. It's usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider with such skin in the game. In comparison, the second and third largest shareholders hold about 9.8% and 4.7% of the stock.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of JS Global Lifestyle

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own the majority of JS Global Lifestyle Company Limited. This means they can collectively make decisions for the company. That means they own HK$4.1b worth of shares in the HK$6.7b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 17% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 9.8%, of the JS Global Lifestyle stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand JS Global Lifestyle better, we need to consider many other factors. For example, we've discovered 3 warning signs for JS Global Lifestyle (1 is significant!) that you should be aware of before investing here.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.